Economics Today: The Macro View (18th Edition)
Economics Today: The Macro View (18th Edition)
18th Edition
ISBN: 9780133884876
Author: Roger LeRoy Miller
Publisher: PEARSON
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Chapter 16, Problem 1CTQ
To determine

Why are future Fed policy intentions, such as those communicated by todays Fed chair, Janet Yellen, of particular interest to securities traders?

Introduction:

Fed owns the right to change the monetary policy which reflects the amount of money in the economy and the interest rates along with the price of bonds. Fed tries to sell and purchase these securities in the open market operations which are owned and controlled by the fed. Fed’s decision influence all the people of a country and people wait for these policies to be in their favor as it affects all the people in the economy.

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